Yes, that is how most 0% scams work. You get a 0% interest balance transfer. Then you think you have 0% on that card. But the purchases you make are at 20%. And you can't pay off that 20% purchase until you paid of the entire 0% transfer.
But that is where the scam comes in. They target those people who shouldn't be using the CC. Then bury the information in fine print. Miss one utility bill payment by one day and suddenly that 0% becomes 20% and the person has no way to pay it. They prey off the stupid.
There have been others here using 0% balance transfers to save $20. But then one month later they post that their credit score plummeted 50 points. Maybe that didn't affect them. Maybe their car insurance company checked the credit score during that time and raised their rates by $50 a year. They could have lost by "being smart".
No, people don't necessarily need to be protected from themselves. But predatory lending does need to be kept in check. Not all CC terms are clear. Not all people realize that accidently mailing the phone bill in one day too late might raise their CC interest by 20%. Why? Because that language is buried in fine and confusing print. I think that part should be clearly listed in large font. If the CC company wanted to be above board, why bury these confusing terms in small font?
Originally posted by: bsobel
Smart people don't cary debt on non-apreciating items
No, you don't get it. You can make a minimal amount of cash on some of these deals. But that cash comes with consequences. We don't disagree with you on that point. But, if you only look at the cash and not the whole picture, you may acutally lose money on that 0% deal.
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